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ARCHIVED Foreign Exchange Fluctuations

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Item Information

Revision History

Date Status ID Title
1991-06-01 Cancelled C3005C ARCHIVED: Foreign Exchange Fluctuations (1991-06-01) C3005C

Remarks – Recommended Use of SACC Item

This clause is to be used in all contracts with foreign-based contractors who 
are awarded contracts providing for exchange adjustment provisions and progress 
payments, with payment to be made in Canadian funds.

Legal text for SACC item

1.  The price in Canadian funds includes a foreign currency component in 
respect of goods and/or services originating outside of Canada as detailed 
in form DSS-MAS 9411, Claim for Exchange Rates Adjustments, which forms 
part of this Contract.

2.  The foreign currency component is defined as the element of the price 
which will be affected by exchange rate fluctuations.  It excludes Canadian 
goods and services tax and excise taxes of an ad valorem nature on imported 
items and customs duty, but includes transportation costs payable in 
foreign currency.

3.  The foreign currency component(s) subject to adjustment in respect of 
goods manufactured and services purchased outside of Canada with payment in 
foreign funds, or from authorized Canadian agents but paid for in a foreign 
currency, and the applicable conversion factors are as detailed in form 
DSS-MAS 9411 which forms part of this Contract.

4.  Price adjustments in respect of changes in currency relationships after 
the effective date stated in the Contract will apply.  They will be based 
upon the foreign currency component(s) as identified in form DSS-MAS 9411.  
Price adjustments will be computed according to the increase or decrease in 
the foreign exchange rate(s) from the rate(s) specified in the form.  Such 
increases or decreases in the rate shall be based on the dates of payment 
to the Contractor by Canada.

5.  The amount of the adjustment so payable shall be the sum of: a) the 
portion of the stated foreign currency component from form DSS-MAS 9411, 
included in the first progress claim, multiplied by the difference between 
the actual rate for foreign currency and the rate for foreign currency 
stated in the Contract (see section B of form DSS-MAS 9411); and b) any 
further amounts calculated in a similar fashion on each subsequent progress 
claim, subject to the provision that such calculation will terminate as 
soon as the full amount of the stated foreign currency component as shown 
at section C of the form has been reached.

6.  On each progress claim submitted, the Contractor shall show the portion 
   of the stated foreign currency component in foreign funds included in 
   the claim.  If the progress claim, in whole or in part, relates to goods 
   already cleared through customs into Canada and not previously claimed 
   on progress claims, the Contractor shall show the dates that the goods 
   where shipped for clearance through customs, supported by a copy of the 
   relevant shipping document.